O O R G / The World Bank - O z o n e O p e r a t i o n s R e s o u r c e G r o u p
GEF Project Proposal Review
February 3, 1999
TO:Tom WaltzFAX: 202-522-3258
OORG Administrator
Global Environment Coordination Division
S-2117
FROM:Harry B. McCain
1.Country of origin: Russia
2.Project title:Substitution of CFC 11 and CFC 12 for HAPs at the aerosol plant of Tovari I Lekarstva, Ltd.
3.Sector/sub-sector: Aerosols
4.Relationship to country programme: N/A
5.Technology
(a)Hydrocarbon propellants have long been the preferred substitute for CFCs when used as an aerosol propellant. Hydrocarbon propellants are selected because of their zero ozone depleting potentials. The only environmental shortcoming of the hydrocarbon aerosol propellants (HAPs) is their flammability which can be correctly handled with the appropriate and now well established HAP technology. The U.S.A. has been using HAPs in aerosols instead of CFCs since 1978. In 1998 approximately 3.1 billion aerosol cans were filled with HAPs.
(b)The technology for the use of HAPs as a substitute for CFCs in aerosol products is well established, permanent, and not transitional. There are no transitional technologies that could be used in the aerosol sector that would be appropriate.
(c)It is totally feasible that the HAP technology required for this project can be transferred from the U.S., Western Europe and the present experience Tovari has had with aerosols as mentioned in the "Sector Background" of this report.
- No technology transfer agreement is required.
- There is no licensing agreement required.
- The reviewer agrees with the determination to use HAPs as a replacement technology for CFCs used as propellants in aerosol products.
- HAP is the most cost effective technology for this conversion.
- Environmental impact
(a)This project will phase out 167 metric tons/year of CFCs (11/12). The cost effectiveness of this project is $4.37/kg U.S.
(b)Costs are appropriate to minimize health and safety and other environmental impacts.
7.Project costs
(a)The total project cost for the GEF Fund Grant is $729,531.16.
(b)Many cost components are present that will facilitate the conversion to hydrocarbon aerosol propellants.
(c)Cost of equipment
(i)The cost of existing equipment is addressed in a manner that is consistent with the reviewer's experience, except:
Item (12) Automatic shutoff valves (2) $16,000 is really two automatic shutoff valves and systems. The cost should be $10,000
(ii)The reviewer agrees with the finding that all of the base line equipment in the report should be acquired.
(iii)No additional equipment requests are essential for the conversion.
(iv)Modification of new equipment is not possible at Tovari I Lekarstva, Ltd.; therefore, new equipment will be required.
(v)The scrapped equipment will be destroyed in this project.
(vi) There will be minimum, if any, value to the scrapped or destroyed
equipment
(vii)With the installation of new equipment at Tovari I Lekarstva, Ltd., there will be no increase in production capacity.
(d)The training costs are appropriate for this project.
(e)Operating costs:
(i)The operating costs are appropriate.
(ii)The amount of $56,968.82 U.S. has been deducted for operating savings, leaving a net proposed grant amount of $729,531.18.
(iii)The calculated savings is reasonable, based on the reviewer’s experience with other projects.
8.Implementation time frame
The time frame of nine quarters is appropriate, assuming the prompt delivery of new equipment.
9.Recommendations
(a)This project is approved with modification. The modification is item (12) as shown in 7(c)(i) Cost of Equipment.
UNOPS/UNDP Technical Reviewer: Harry B. McCain
Date Review Completed: February 3, 1999
February 3, 1999
TO:Tom WaltzFAX: 202-522-3258
OORG Administrator
Global Environment Coordination Division
S-2117
FROM:Harry B. McCain
1.Country of origin: Russia
2.Project title:Substitution of CFC 12 for HAPs and mechanical pumps at the aerosol plant of JSC Altaivitaminy
3.Sector/sub-sector: Non-MDI Pharmaceutical Aerosols
4. Relationship to country programme: N/A
5.Technology
(a)Hydrocarbon propellants have long been the preferred substitute for CFCs when used as an aerosol propellant. Hydrocarbon propellants are selected because of their zero ozone depleting potentials. The only environmental shortcoming of the hydrocarbon aerosol propellants (HAPs) is their flammability which can be correctly handled with the appropriate and now well established HAP technology. The U.S.A. has been using HAPs in aerosols instead of CFCs since 1978. In 1998 approximately 3.1 billion aerosol cans were filled with HAPs.
(b)The technology for the use of HAPs as a substitute for CFCs in aerosol products is well established, permanent, and not transitional. There are no transitional technologies that could be used in the aerosol sector that would be appropriate.
(c)It is totally feasible that the HAP technology and pump spray technology required for this project can be transferred from the U.S., Western Europe and the present experience JSC Altaivitaminy has had with aerosols as mentioned in the "Sector Background" of this report.
(i)No technology transfer agreement is required.
(ii)There is no licensing agreement required.
(iii)The reviewer agrees with the determination to use HAPs as a replacement technology for CFCs used as propellants in aerosol products.
(iv)HAP is the most cost effective technology for this conversion.
- Environmental impact
(c)This project will phase out 53 metric tons (ODS)/year of CFC-12. The cost effectiveness of this project is $11.91/kg U.S. This cost effectiveness is greatly in excess of the $4.40 kg U.S. used as the standard for the aerosol sector. Annex 6 of this report requests an authorization threshold increase for this project and gives the rationale. The reviewer has studied this carefully and agrees that the threshold for this project only should be raised.
(d)Costs are appropriate to minimize health and safety and other environmental impacts.
7.Project costs
(a)The total project cost of $631,400 is not affected by the incremental operating savings, leaving a requested grant amount of $631,400.
(b)Many cost components are present that will facilitate the conversion to hydrocarbon propellant and pump technology.
(c)Cost of equipment
(i)The cost of existing equipment is addressed in a manner that is consistent with the
reviewer's experience.
(ii)The reviewer agrees with the finding that all of the base line equipment in the report should be acquired.
(iii)No additional equipment requests are essential for the conversion.
(vi)Modification of new equipment is not possible at JSC Altaivitaminy; therefore, new equipment will be required.
(vii)The scrapped equipment will be destroyed in this project.
(vi)There will be minimum, if any, value to the scrapped or destroyed equipment.
(viii)With the installation of new equipment at JSC Altaivitaminy, there will be no increase in production capacity.
(d)The training costs are appropriate for this project.
(e)Operating costs
(i)The incremental operating profits of $24,183 calculated over four years using the net present value system with a ten percent discount rate is far less than the cost increases for one year with pumps. Therefore, no operating savings are considered here.
(iv)The total project incremental cost of $574,000 plus 10% contingency, totals $631,400.
(v)The calculated savings is reasonable, based on the reviewer’s experience with other projects.
8.Implementation time frame
The time frame of nine quarters is appropriate, assuming the prompt delivery of new equipment.
9.Recommendations
(b)This project is approved.
UNOPS/UNDP Technical Reviewer: Harry B. McCain
Date Review Completed: February 3, 1999
Country:Russian Federation
Firm: ICEBERG - Domestic Refrigeration Equipment
Type:Conversion of CFC-12 Refrigerator Manufacturing to HFC-134a
Date:February 1999
RTU-UNWB-LK-99037-dl
Scope
The project under review covers the conversion of CFC-12 based commercial refrigeration equipment manufacturing to HFC-134a; the foam part is not reviewed here.
1. Project Description
The project proposal describes the sector and enterprise background in an adequate manner. Details given on refrigerator models, on charges, on the use of compressors are in order and underscore the importance of the project.
The project description where it concerns leak detection and charging procedures is very detailed; no comments have to be made. The baseline given and the acquisition of new equipment in manufacturing processes is all considered necessary.
2. Technology
There are two substitutes to replace CFC-12, isobutane and HFC-134a. If the use of isobutane is prohibited, HFC-134a is the only choice. The phaseout of CFC-113 is considered to be possible as proposed.
3. Environmental impact
The environmental assessment, although short, is in order. The proposed HFC-134a has no ODP and acceptable other environmental aspects, which includes a global warming potential of 1300 (100 y time hor), which is about 15% of that of CFC-12. This emphasises emission reduction as proposed.
- Project costs
Project costs are in order:
- Mass spectrometers may not be necessary, equipment with equal sensitivity will involve costs at the same level, therefore this is acceptable;
- Charging units, supply pumps, R & R units are necessary;
- Tests and trials, training and certification do not ask for comments.
5. Implementation time frame
No comments.
6. Operating costs
As observed in many refrigerator project proposals (not applicable for GEF).
7. Recommendations
The project, as proposed for ICEBERG, is supported.
Eindhoven, 99 02 11
Kuijpers, LJM
RUSSIA – ICEBERGTECHNOLOGY
The enterprise manufactures domestic refrigerators and freezers. It proposes to replace the CFC 11 which is currently used as a blowing agent for the rigid polyurethane foam by, as an interim measure, HCFC 141b. The enterprise is aware that the subsequent conversion to a zero ODP blowing agent will be at its own expense.
HCFC 141b is used by several refrigerator and freezer manufacturers - particularly those who do not want the expense of converting from CFC 11 to pentane. It has the advantage over currently available alternative blowing agents of offering insulating properties close to those of CFC 11.
The enterprise considered several options before making its technology decision. It rejected HFC 134a because of high operating costs, Cyclopentane because of high installation costs and the proximity of local housing makes it very unlikely that a permit to use it would be obtained and water (CO2 ) because of poor foam properties. For the future, the zero ODP blowing agent candidates are HFC 245fa and HFC 365mfc.
The project involves the purchase of a two high pressure dispensers to replace the current low pressure units, new fixtures and moulds and isocyanate and polyol delivery pumps. Also included are provisions for trials and training.
The enterprise is aware that it may have to start the replacement of HCFC 141b within a few years and when the liquid HFCs become available. The phasedown of HCFC use starts in 2004 in developed countries but the situation in CEITs has not been separately clarified. The enterprise will have to convert to a zero ODP technology at its own expense.
There is no provision for upgrading the plastic liners. This is almost always required with HCFC 141b especially, as in this case CFC 11 is replaced on a molar basis by HCFC 141b. That is, comparatively high HCFC 141b levels are used (as in the USA). The costs of conversion of the liner making facilities and incremental operating costs will be borne by the enterprise.
SAFETY AND ENVIRONMENTAL ISSUES
The enterprise is aware that HCFC 141b has a residual ODP and will have to be replaced at its own expense.
The training should include safe handling of HCFC 141b.
PROJECT COSTS
The calculated grant effectiveness is well within the limit for this sub-sector. This is using a baseline of 1993 to 1996 when it is considered that the project was started. As seen in Annex 6 the production levels from 1996 to 1998 are considerably less.
The project is uses a 1994 equipment baseline and includes the replacement of the two low pressure dispensers by high pressure units. Using the same baseline, some of the moulds and fixtures will also be replaced. These expenditures are supported. The production area for cabinets and doors is going to be moved to a new location remote from the current isocyanate and polyol storage's and pumps may be required to transfer the chemicals from drums. The modest expenditure proposed for the pumps is supported.
The incremental operational costs are well displayed and are supported
IMPLEMENTATION TIMEFRAME
This is acceptable.
Recommendation
Approval.
M Jeffs
26/02/99 gefrusic
Country:Russian Federation
Firm: ISKRA - Commercial Refrigeration Equipment
Type:Conversion of CFC-12 Equipment Manufacturing to HFC-134a
Date:February 1999
RTU-UNWB-LK-99038-dl
Scope
The project under review covers the conversion of CFC-12 based commercial refrigeration equipment manufacturing to HFC-134a.
1. Project Description
The project proposal describes the sector and enterprise background in an adequate manner. Details given on appliance models, on compressors and charges are in order. It would have been interesting if the proposal would have specified when specific appliance and compressor models have been developed.
Project description gives all the necessary details on oil charging, refrigerant charging, leak detection, cleaning, etc; no comments have to be made. The list with baseline equipment is OK.
2. Technology
The proposal gives a very short overview of alternatives for CFC-12 equipment, i.e. flammable hydrocarbons and HFC-134a as well as HCFC-22 and HCFC-blends. The reason why HCFCs are not being selected is OK. It can be approved that hydrocarbons are not selected taking into account the quantities to be applied (5 – 25 kg) and, in some cases, the open type of the product.
One question remains and that is whether all CFC-12 equipment can be converted to HFC-134a (lower temperature limit), or that e.g. R-404a for low temperatures has to be applied. It should be explicitly mentioned that this has been investigated.
3. Environmental impact
The environmental assessment, although short, is in order. The proposed HFC-134a is non-flammable, has no ODP and acceptable other environmental aspects, which includes a global warming potential of 1300 (100 y time hor), which is about 15% of that of CFC-12. It will ask for procedures to reduce emissions.
- Project costs
Project costs are in order. It is difficult to judge upon the retrofit costs of a calorimeter, but the order of magnitude seems OK. It is not clear why HP-PU, fixtures/moulds and polyols are mentioned (delete).
It is not clear why technical assistance should cost US $ 30,000 for Russian research institutes. This needs to be specified.
5. Implementation time frame
No comments.
6. Operating costs
As observed in many commercial refrigeration project proposals. However, it is amazing to see how low the CFC-12 price is compared to HFC-134a. Anyhow, this part is not applicable to obtain GEF support.
7. Recommendations
The project proposal can be supported, provided that:
- It is specified that all CFC-12 equipment can be converted to HFC-134a with good results;
- Technical assistance has been specified in more detail;
- Some elements that deal with polyurethane will be deleted.
Eindhoven, 99 02 12
Kuijpers, LJM
Country:Russian Federation
Firm: Yaroslavl Holodmash
Type:Conversion of CFC-12 Compressor / Condenser Units Manufacturing
to non ODP solutions (HFC-134a)
Date:September 1998
RTU-UNWB-LK-98227-dl
Scope
The project under review covers the conversion of CFC-12 compressor and condenser units manufacturing to the use of non ODP solutions (HFC-134a).
1. Sector and Enterprise Background
First remark: the project objective can never be helping Russia to achieve the 1999 freeze (first paragraph), since Russia is no Article 5(1) country and should have phased out. The description of the sector background is clear, in principle two larger manufacturers are still in operation, JSC Marikholodmash and JSC Holodmash.
It is clear what is meant by production and by the use of CFC-12 refrigerant. Many times it is mentioned that compressors are manufactured (which are not charged), many times one finds the definition “condensing units” which are charged with refrigerant.
In Annex 7, it is given that the vast majority is condensing units; it is therefore clear that virtually the entire market for commercial equipment is provided with condensing units.
There a constant decrease of the numbers of compressors and a fluctuation in the amount of refrigerant bought. This will also determine the amount of refrigerant phased out; it is correct to take a sort of average, or not only the peak year.
2. Project Description
The project proposal mentions that in 2002, after project completion, equipment will be on HFC-134a, R-404A, and (HC) R-600a, isobutane. It is clearly stated that 60% of the production consists of R-600a units which do not belong to the project described in the proposal. This is related to a Zanussi contract (USD 40 million) and a German loan. It is clear that the 600a manufacturing does not replace existing production, but is new manufacturing capacity.
It is also “straightforward” that there is a GEF grant needed for a small part of the production (less than 10%) to convert to a ozone friendly refrigerant (HFC-134a, which is the only possibility).
3. Technology
The proposal gives an overview of the possibilities of HFC-134a (with a GWP of 1300 for a 100 year time horizon). It is correct to state that flammable blends may not be applied in the type of equipment.
Considerations on HCFC-22, HCFC based blends and R-404A (difficult to consider) seem reasonably correct.
4. Environmental impact
The refrigerant proposed HFC-134a has no ODP and acceptable other environmental aspects (i.e. it has a certain global warming potential of 1300, being 15% of CFC-12).
5. Project costs
In the table, which presents the total costs at 56,258 million the Russian counterpart, the GEF part and the Concessional Loan is shown. In fact, where it concerns the project, a more clear description of the conversion process, plus a better description of the existing baseline equipment, and a proposal for new equipment would be preferable, but it is acceptable as is.
6. Implementation time frame
No comments.
7. Recommendations
The conversion project as proposed is recommended.
Eindhoven, 98 09 16
(Ozone Day)
Kuijpers, LJM
Country:Russian Federation
Firms: Commercial Refrigeration Equipment Servicing at Sverdlovsk Oblast by Combine Torgtechnika
Type:Recovery and Recycling
Date:September 1998
RTU-UNWB-LK-98226-dl
Scope
The project under review covers the installation of recovery equipment plus additional material in 220 workshops (or at service engineers with cars) at Sverdlovsk Oblast for the Combine Torgtechnika organisation. It also proposes a limited number of recycling centres (17 centres) and one reclaim centre.